Jersey and Guernsey have been included in the UK’s new trade deal with Australia, following the signing of the Agreement.
Following on from the high-level Agreement in Principle (AIP) announced between the two countries in June, the UK and Australia have today formally signed the Free Trade Agreement. This represents the UK’s first entirely new agreement as an independent trading nation following their departure from the European Union in December 2020.
The Channel Islands are included within the Trade deal for goods-related chapters from day one. The Free Trade Agreement (FTA) also includes explicit provision for other chapters in the agreement – such as services – to be extended to the Islands in the future. This is supported by an exchange of letters between Australia and the UK, confirming future extension as soon as is practicable.
This arrangement aligns with Jersey’s participation in other FTAs to date and supports our obligations under the Jersey-UK Customs Arrangement. Jersey’s inclusion in this agreement accords with the principles endorsed by the States Assembly for FTA participation on 25 November 2021.
Jersey’s Minister for External Relations, Senator Ian Gorst, commented: “We welcome the news today that the UK has signed a Free Trade Agreement with Australia. It’s a deal which includes Jersey for goods and has provision to be extended to us in other sectors as well if we wish.
“This is a really positive outcome for Jersey, providing more opportunities for our local economy to access new markets and increase our presence and visibility on the international stage. The option to extend other chapters of the agreement – such as services and digital – is positive and I am particularly pleased that both Parties have published a joint statement committing to pursuing this with us.
“I would like to thank all parties for their determination and hard work throughout these negotiations and ensuring Jersey’s interests are represented. Jersey has strong cultural, social and heritage links with Australia, including a noticeable diaspora living there and hundreds of Australians who call Jersey their home.
“We look forward to building on this agreement and securing further inclusion in other FTA’s should it be in our best interests to do so”.
Guernsey’s Deputy Jonathan Le Tocq, Minister for External Relations & Constitutional Affairs said: “Today’s announcement of the conclusion the UK-Australia Free Trade Agreement (FTA) is very welcome news and is particularly important for Guernsey also, whose own International trade interests are also secured within this agreement.
This agreement is one of the first in a series of new UK Comprehensive FTA’s with new countries and follows previous agreements which have been concluded on our behalf such as Japan and EEA-EFTA. This agreement covers preferential treatment in respect of the trade in goods and allows extension in the future, subject to further negotiation, to benefit from preferential access to trade in services. This is a very
welcome step and one which is supported in writing by the Secretary of State for International Trade Rt Hon Anne-Marie Trevelyan and Dan Tehan Minister for Trade, Tourism and Investment of Australia.
The UK-Australia FTA has been in negotiation for some time and is one of the many FTAs that both our own officers and UK officers have been working on with the aim of achieving an agreed outcome. Having spoken only very recently to the Ministerial engagement with the Minister of State for International Trade, the Rt Hon Penny Mordaunt, and through our officer engagement with the Department for International Trade (DIT), we continue to make clear the importance of ensuring that Guernsey’s interests are taken as part of the UK’s international trade agenda. I would like to express my thanks to the negotiating teams who have worked hard behind the scenes to ensure that Guernsey’s interests have been secured within this agreement.”
Deputy Nick Moakes, the Committee for Economic Development’s lead member for International Trade said: “Guernsey’s international trade interests are broad in scope covering exports of goods and services to a wide range of global trade partner countries. The conclusion of today’s agreement not only ensures that Guernsey businesses and individuals importing and exporting goods to and from Australia benefit from the removal of trade barriers and preferential trade tariffs, but this agreement also allows for further negotiation in areas of economic growth and importance to Guernsey business.
“Areas such as professional services, financial services and investment, digital trade and ecommerce are of particular importance and we will continue to work closely with businesses and business groups to identify and take forward future negotiation priorities. I very much welcome today’s announcement and see this as another significant agreement in which Guernsey’s international trade interests have been taken forward. I would also like to extend my thanks to officers for their continued efforts in securing our interests within this deal and to those businesses and business groups who continue to work with us in relation to advising and supporting us in relation to international trade matters.”
Further information:
- Free Trade Agreement between the United Kingdom of Great Britain and Northern Ireland and Australia – GOV.UK (www.gov.uk)
- UK Australia Free Trade Agreement: UK Side Letter Regarding the Extension of the UK-Australia FTA to the Crown Dependencies (publishing.service.gov.uk)
- UK-Australia Free Trade Agreement: AU Side Letter Regarding the Extension of the UKAustralia FTA to the Crown Dependencies (publishing.service.gov.uk)
